Scottish sausage skin maker Devro agrees German takeover

Shares in Scottish sausage-casing maker Devro sizzled on Friday after German food giant Saria served up a £667 million takeover.

Devro stock rocketed 60 per cent to 307 pence on the London stock market, close to Saria's agreed bid of 316.1 pence per share.

The pair "have reached agreement on the terms of a recommended cash acquisition", they said in a statement to the London Stock Exchange.

"Saria believes that Devro represents an attractive opportunity to acquire a highly regarded global business of scale which will accelerate" its growth.

The German firm "intends to maintain and invest in Devro's seven manufacturing sites to increase their capacity", it added.

Devro has its main base in Scotland but also works out of production sites in Australia, China, the Czech Republic, the Netherlands and the US. It employs 2,000 people worldwide.

Saria, which has global operations spanning 26 countries with a workforce of 10,500, specialises in agriculture and food products as well as biofuels.

The group is privately owned and based in Selm, western Germany.